Ontario

Ontario Eviction Process

What’s the deal with evictions in Ontario?

Before leases can be terminated, both the tenant and the landlord are responsible for negotiating (or renegotiating) the terms of the lease or terminating the lease.

Tenants are required and allowed to provide written notice during a fixed term lease, provided the termination date is not earlier than the last day of the tenancy and is in full compliance with the Residential Tenancy Act (RTA).

Landlords may only terminate a tenancy for specific and valid reasons as per the RTA. Fixed leases (ie standard 12 month leases) automatically convert to Month-to-Month termed leases (with the same pre-negotiated conditions from the termed rental agreement) once the fixed period has come to an end and no notice has been served.

The landlord has the right to raise the rent provided they have done so using the proper forms as provided by the RTA with a minimum of 90 day notice.

What are some reasons I can evict someone in Ontario?

The tenant owes rent.

The tenant continually pays rent late

The tenant (or their guests) did something illegal on the property.

The tenant (or their guests) caused damage or serious problems for the landlord or other tenants.

The landlord wants to tear down the building or use it for something else.

The landlord, the landlord’s family, or the buyer’s family wants to move in. Family includes only spouse, child, parent, spouse’s child, and spouse’s parent. It also includes a caregiver for any of them.

The above are just a few of the reasons a landlord can evict and terminate a tenancy. There are more reasons listed in the RTA.

Are there situations I cannot evict someone in Ontario?

You cannot evict or terminate a tenancy for any reason that is not in the RTA. For example, you cannot evict or terminate a tenancy just because the tenants have a pet; Unless it bothers or causes problems for other people in the building — even if your lease says no pets.

What does the eviction process normally look like in Ontario?

The landlord must provide written notice to the tenant allocating the required notice time prior to giving the notice of eviction. The time required varies depending on the reasons for the notice itself.

The tenant is able to terminate daily or weekly tenancies as long as they provide the landlord with 28 days written notice. All other require a minimum of 60 days notice from the 1st of the month.

A typical eviction process would be for non-payment of rent. In this case the landlord must provide the tenant(s) with an N4 Form. Once the N4 has expired, the next step is to provide an L1 form.

It is important to follow all the rules of the forms as provided by the RTA to ensure that the eviction process is successful. Rules around what can and cannot be included in the the N4 and the L1 are outlined in the resources provided by the RTA.

Please see below for further resources around the eviction process in Ontario

Where can I learn more?

The Ontario government has done a good job at outlining all of their procedures on their site. See the Resources section below for more information.

Resources:

Disclaimer: Many of the terms in these fact sheets may relate to certain legal rights and obligations that tend to change from time to time. The information provided does not constitute legal advice and the manager of this database is not a law firm. These materials are intended, but cannot be promised or guaranteed to be current, complete or up-to-date.The specific interpretation of the terminology, acts and relevant regulations depends on the laws and procedures corresponding to that particular province. All of these fact sheets are to be used for informational purposes only and are not meant to be used as legal advice. If you need more information about your province or territory, including details about legal orders, notices and certain forms, contact your local rental authority or a qualified lawyer in the area.

Ontario Security / Last Months Rent (LMR) Process

Last Updated: January 25, 2018

What’s the deal with Security Deposit or Last Months Rent (LMR) laws in Ontario?

Ontario does not allow for Security Deposits. Instead they have and allow for Last Month Rent deposits (also generally known as LMR Deposits). Since the leases in Ontario automatically convert to Month-to-Month tenancies the landlord has the option to ask tenants to update their LMR deposits when rent increases take place.

Other Deposits such as Key deposits cannot be required by law. Although this is common practice this is not legally allowed.

Do landlords need to charge tenants a Last Month Rent deposit in Ontario?

No. A Landlord is not required to collect LMR deposits in Ontario.

What are the limits on Last Month’s Rent deposits in Ontario?

Landlords can require a tenant to pay a deposit upon moving in, but the amount of it cannot exceed that of one month’s rent, though the deposit is not considered a security deposit.

Do landlords need to provide a receipt for a security deposit?

No, a specific receipt or proof is not required Ontario. The documentation in the lease and/or application is often sufficient if properly documented making the real receipt not mandatory.

Does the money need to be kept in a separate account to allow it to accrue interest?

No, there is no specific law in Ontario indicating that a special account must be used for the LMR funds. However; the LMR does accrue interest as per the law. In accordance with the Residential Tenancies Act, the rate of interest to be paid annually to a tenant is equivalent to the rent increase guideline of the same year that the interest is to be paid. This deposit may only be applied to the last month of rent.

What can security deposit money be used for?

The tenant’s last month of rent may be collected as a deposit, but it is not to be used in paying for damages to the property. This deposit may only be applied to the last month of rent. It is not considered a security deposit, because it is not used to pay for damages.

What is the deadline to return a LMR deposit in Ontario?

Since this deposit is not a security deposit it automatically gets applied to the tenants Last Month Rent. Only if a court order deems that the tenancy is terminated and requires funds to be returned to tenant is this money refunded.

Do landlords need to notify renters of LMR deposit money used to fix damages?

This money CANNOT be used to fix damages. The act is very clear on that these funds are only to be used for Last Month Rent and cannot be used for anything else.

Where can I learn more about Ontario Security and Last Months Rent (LMR) Deposit laws?

Please see the resource section below to see more links to provide further information on Ontario’s LMR deposit rules and laws.

Resources:

Disclaimer: Many of the terms in these fact sheets may relate to certain legal rights and obligations that tend to change from time to time. The information provided does not constitute legal advice and the manager of this database is not a law firm. These materials are intended, but cannot be promised or guaranteed to be current, complete or up-to-date.The specific interpretation of the terminology, acts and relevant regulations depends on the laws and procedures corresponding to that particular province. All of these fact sheets are to be used for informational purposes only and are not meant to be used as legal advice. If you need more information about your province or territory, including details about legal orders, notices and certain forms, contact your local rental authority or a qualified lawyer in the area.

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